Mississauga Real Estate News - Summer 2008

Toronto and Mississauga Real Estate Market Conditions and News

Summer 2008!

As we have moved thru the summer, activity levels have slowed down from the frantic pace that many regions of the country experienced in 2007. The first and second quarter of this year were one of the worst in recent history seeing sales fall three consecutive months in a row. . The controversal land transfer tax has also had an impact since it sent many buyers rushing out to buy before the end of 2007 to avoid the tax. Even though sales are falling we are not seeing a significant change in prices. Most areas are holding the pricing from last fall and some have gone up as much as 3.5 %, but homes are staying on the market longer as buyers are taking their time making buying decisions. Buyers also have more inventory to choose from. The fall market is just around the corner so activity will definitly pick up on both the buying and selling side.

2008 has been a much better time to buy a home than in previous years because the rate of price appreciation has been lower. And in any market, in terms of unit sales, first-time buyers are the most active group. This year first time buyers also have the benefit of not having to pay land transfer tax on a resale home or condo. So what we are seeing in 2008 is that falling interest rates, new loan products that allow them to amortize payments over a longer period of time—thereby dropping their payments—and a slowing rate of price appreciation, will all add up to create a good time for first-time buyers to come into the market.

TOPIC OF THE SEASON:

Land Transfer Tax Rebate For First Time Buyers Extended!

This is incredible news for first time buyers who are buying a re-sale home or condo.The Provincial Government has announced that it is expanding the PROVINCIAL land transfer tax rebate for first-time buyers to include re-sale housing!

Expanded ProvincialLand Transfer Tax details:

First-time buyers of both re-sale, and newly constructed homes, will be eligible for a rebate of the provincial land transfer tax of up to $2,000.

Effective for first-time buyers who enter into Agreements of Purchase and Saleafter December 13, 2007.

This change is being implemented by provincial legislation introduced on December 13, 2007. The Ministry of Finance has indicated that, until the legislation is passed, first-time buyers of re-sale properties eligible for the rebate can submit their applications for the refund and they will be processed once the legislation has passed. It is not known when the legislation will be passed. Buyers can consult with their lawyers if they have concerns.

The provincial land transfer tax rebate applies in all Ontario municipalities.

Further information is available by calling:

Ministry of FinanceLand Transfer Tax Section905-433-6361

Or

Ministry of FinanceGeneral Inquiry1-800-263-7965

2ndLAND TRANSFER TAX (Municipal – This applies to the City of Toronto only)

The City of Toronto has indicated that it has been able to make arrangements that will allow purchasers who are eligible for a FULL rebate of the Toronto Land Transfer Tax (TLTT) to close their transactions without paying the TLTT upfront (and then receiving a rebate at a later date). The City previously indicated that these arrangements would not be made until the “spring of 2008”, but has now indicated that changes will be made by February 1, 2008, when the Toronto land transfer tax takes effect.

Toronto land transfer tax is not payable on transactions closing before the tax takes effect on February 1, 2008. For transactions closing after the Toronto land transfer tax takes effect on February 1, 2008, the City of Toronto allows for certain rebates, as described below.

Details

According to the City, purchasers who are eligible for a FULL rebate of the Toronto land transfer tax will not have to pay the tax (meaning that they do not have to pay the tax upfront and be rebated later). This includes the following:

Purchasers who have entered into an Agreement of Purchase and Sale for a property on or before December 31, 2007; and

First-time home buyers where the total Toronto land transfer tax is $3,725 or less ($3,725 is the amount of TLTT payable on a home purchased for $400,000). First-time home buyers with Toronto land transfer tax payable above the maximum rebate amount of $3,725 (those purchasing homes above $400,000) will be required to pay the total Toronto land transfer tax, and then receive the maximum rebate of $3,725 at a later date from the City. Once all changes have been made to Teranet’s collection system, in the spring of 2008, these buyers will only have to pay the balance of the Toronto land transfer tax above $3,725.

More Information

Further information is available by calling:

City of Toronto416-338-0338.

NOTE: The original document was retrieved from various sources and modified for residential use.Although Iendeavour to ensure the accuracy and timeliness of information, it is not guaranteed. Therefore I do not accept any responsibility for any loss arising from any use or reliance on the information contained herein.